# In the matter of Bangs Restro Ventures Pvt. Ltd. MA-609-2018 In CP-645-2017

> NCLT judgment dated 2018-11-12. Citation: TCN-2018-NCLT-00363. The case involves an application (MA/609/2018) filed in CP/645/IB/2018 by the Resolution…

- **Court:** NCLT
- **Order date:** 12 Nov 2018
- **Citation:** TCN-2018-NCLT-00363
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/bangs-restro-ventures-pvt-ltd-ma-609-2018-in-cp-645-2017-0a2dc505

## Summary

### Background

The case involves an application (MA/609/2018) filed in CP/645/IB/2018 by the Resolution Professional, Mr. Raghuram, under Section 12 (A) of the IBC, 2016, seeking orders to consider the withdrawal of the application filed by the Operational Creditor. A 'Deed of Compromise' was entered into between the Operational Creditor and one of the Directors of the Corporate Debtor to settle outstanding dues. The Resolution Professional submitted the Minutes of the Proceedings of the 3rd meeting of the Committee of Creditors, where it was resolved with 100% voting rights to file an application for settlement under Section 12A of the IBC, 2016, for withdrawal of the pending case.

## Facts

Raghuram, the Resolution Professional, filed MA/609/2018 in CP/645/IB/2018 under Section 12(A) of the IBC, 2016, seeking withdrawal of the application filed by the Operational Creditor. A 'Deed of Compromise' was executed on 26.10.2018 between the Operational Creditor and a Director of the Corporate Debtor to settle outstanding dues of Rs. 25 lakhs. Rs. 15 lakhs was paid on 22.10.2018 via Cheque No. 052652 drawn on SVC Co-operative Bank Ltd., Chennai, in favor of Godrej Tyson Foods Limited (Operational Creditor). The remaining amount was paid via Cheque No. 052653 dated 22.11.2018. The Committee of Creditors, in its 3rd meeting on 26.10.2018, resolved with 100% voting rights to file an application for settlement under Section 12A of the IBC, 2016. The original order

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## Issues and analysis

### Issue 1: Whether the application for withdrawal of the insolvency proceedings filed by the Resolution …

**Ratio:** Section 12A of the IBC, 2016 allows for the withdrawal of an application admitted under

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**Reasoning:** The court considered the 'Deed of Compromise' between the Operational Creditor and the

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**Interpretation:** Section 12A provides a mechanism for parties to resolve disputes amicably and

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**Application:** The court applied Section 12A by considering the settlement agreement and the

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## Parties

- **Judges:** Ch. Mohd Sharief…
- **Appellants:** Raghuram…
- **Respondents:** Bangs Restro…

## Timeline

- **2018-07-25 — Original…**: Original order passed…
- **2018-10-22 — Partial P…**: Rs. 15 lakhs paid to Godrej Tyson…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 12(a) — Time-limit for completion of insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-12)

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